LTIMindtree Secures Major ₹3,000 Crore AI Tax Contract from CBDT
LTIMindtree Ltd has clinched a significant contract worth ₹3,000 crore, equivalent to $332 million, from the Central Board of Direct Taxes. The company announced this development through a stock exchange filing on Friday. This contract represents the third-largest order for LTIMindtree over the past twelve months.
Building an AI-Powered Tax Analytics Platform
The seven-year mandate involves constructing an artificial intelligence-powered program. This program aims to modernize India's national tax analytics platform. LTIMindtree stated that the contract reinforces its leadership in digital transformation. The company will leverage advanced digital architecture and data analytics to deliver real-time insights for policymakers.
This deal translates to an annual revenue of at least $47 million for LTIMindtree. It provides an incremental growth of approximately 1% for the IT services firm. LTIMindtree concluded the last fiscal year with revenues of $4.93 billion, marking a 4.8% increase.
Second Engagement with CBDT in Under a Year
This contract marks LTIMindtree's second collaboration with the central tax body within a year. On August 7, the CBDT awarded a ₹792 crore mandate to the company. That project focused on transforming India's Permanent Account Number infrastructure. LTIMindtree was tasked with designing, building, and operating the tax body's back-end IT systems. This included infrastructure, security, automation, and ongoing operations.
A Boost for CEO Venu Lambu
The new deal serves as a major boost for CEO Venu Lambu. He assumed leadership of the company in June 2025. Under his tenure, LTIMindtree has now secured its second substantial contract in less than a year.
On October 6, the company announced its largest-ever deal. This was a $585 million IT modernization contract with Paramount Global, a New York-based media company. The six-year term includes at least $350 million in new business for LTIMindtree. This Paramount deal contributes an incremental growth of about 1.3%.
Earlier, on May 12, LTIMindtree revealed a seven-year, $450-million IT modernization contract with ADM. That agreement translated into an incremental growth of 1.4% for the Mumbai-based firm.
Projected Incremental Growth from Recent Deals
LTIMindtree does not provide full-year or quarterly revenue guidance. However, analysts now expect the company to achieve up to 3.3% incremental growth solely from these three major deals.
The market reacted positively to the news. LTIMindtree's shares rose by 4.89% to ₹6,325 as of 2:35 PM on Friday.
CEO Expected to Comment During Earnings Call
An executive familiar with the development indicated that CEO Venu Lambu will likely address this contract during the company's third-quarter earnings announcement on January 19. LTIMindtree does not separately disclose revenue from India. The Indian market falls under the rest-of-the-world category, which constitutes slightly more than ten percent of its total business.
Indian IT Firms Focusing on Domestic Market
This deal arrives as Indian IT outsourcers increasingly look inward to boost revenue. Just a week ago, HCLTech appointed Sandeep Saxena as chief growth officer. This move aims to sharpen the company's focus on the India region.
In August 2023, Tata Consultancy Services Ltd secured a massive $1.83 billion contract from Bharat Sanchar Nigam Ltd for 4G network deployment. That deal stands as one of the largest awarded by an Indian government body to an IT outsourcer.
Navigating a Challenging Market Environment
LTIMindtree was formed after parent company Larsen & Toubro merged L&T Infotech with Mindtree in 2019. The company now operates in a complex market. Demand recovery for IT services is slowing due to macroeconomic uncertainty. Tax wars in key markets and the disruptive impact of artificial intelligence add further challenges.
These large contracts could potentially offset revenue reductions caused by these three significant factors. They provide a stable foundation for growth during a period of industry-wide transition.
